Nordic American Tankers is gearing up for the expected tanker rally, which could be boosted by political unrest.
The Herbjorn Hansson-led suezmax tanker owner reported a $15m loss for the second quarter, alongside a 1-for-5 reverse stock split and a "sharpening" of its marketing efforts toward investors.
The company said the reverse split would be effective later this year and is intended to boost the share price from its $1.75 to $3.29 52-week range.
In early trading Friday, Nordic American Tankers shares were trading at $1.75.
The $15m loss represents an $0.11 loss on a per share basis, roughly in line with analyst expectations.
The performance was also a year-over-year improvement from the second three months of 2018, when the company lost $27.2m.
Voyage revenues grew slightly, to $30.6m from $27m, over the same period.
Meanwhile, operating expenses dropped by $7.3m while the company took no impairment or disposal losses for the second quarter of 2019.
"There are several indicators that the tanker market is going up," the company said.
"The most obvious can be seen in the above year-on-year numbers, clearly showing that the tide has turned."
Further, the company argues that the US-China trade war headlines could create "inefficiencies" in the energy market, limiting the supply of ships and boosting Nordic American Tankers.
"Political unrest is normally positively impacting demand for our ships," the company said. "The relationship between China and the US should be seen in this light. This feature of the tanker market is not always understood by observers."
